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RBA deputy keeps option open for further rate hikes
RBA Deputy Governor Andrew Hauser said another increase is not inevitable, but the Board stands ready to tighten if inflation has not eased enough.
RBA Deputy Governor Andrew Hauser said the Bank is still prepared to raise interest rates again if needed, describing inflation as Australia’s “one big problem.” Speaking in an interview with ABC’s 7.30, he said the RBA’s job is to bring inflation down and noted Australians remain frustrated by elevated prices.
Hauser pointed to three forces keeping inflation high: the Middle East crisis, a global AI-driven investment boom, and weak Australian supply capacity. He said the RBA “stands ready” to act if circumstances demand it, emphasizing that another hike is not automatically locked in.
The deputy governor said the key question is whether the RBA has “done enough or is more needed.” While he said the RBA could raise rates sharply and even do so quickly if required, he added the Board is not at that point because it wants to protect employment and avoid an unnecessarily hard landing.
Hauser said the economy is currently doing relatively well on unemployment and real household incomes, and that the RBA is taking longer than some other central banks to return inflation to target to preserve labor-market gains. He reiterated that weaker demand is part of the adjustment the RBA wants to see, but it does not remove the case for another hike if inflation pressure remains too strong, with the reaction tied to incoming data.